Financial Centre “Markaz” MENA Daily Fixed Income Report – 20 September 2017

News Update: GCC Bonds & Sukuk: Best and worst Performers (20 September 2017) Sovereign Ratings London trial could go ahead without UAE's Dana Gas: Judge- A Best daily Performers Daily change Worst daily Performers Daily change Moody’s S&P Fitch High Court judge called on Tuesday on Dana Gas and its creditors to ADCBUH 4 1/2 03/06/23 0.24% INTPET 6 7/8 11/01/41 -0.35% Abu Aa2 AA AA agree on a way for a trial seen as shaping the future of Islamic finance to KUWAIE 9 1/2 08/04/19 0.13% DANAGS 7 10/31/17 -0.32% Dhabi proceed and said he might complete it regardless of whether all parties DANAGS 9 10/31/17 0.09% OMGRID 3.958 05/07/25 -0.30% B1 BB- BB+ were present. George Leggatt adjourned the trial until Thursday after Best YTD Performers YTD change Worst YTD Performers YTD change lawyers for Dana Gas said that it was prevented from taking part in the DPWDU 6.85 07/02/37 16.65% EAPART 6 3/4 06/01/21 -14.52% Kuwait Aa2 AA AA proceedings because of an injunction by a UAE court. Leggatt said before FABUH 0 1/2 03/27/28 14.92% EAPART 6 7/8 09/28/20 -13.87% Baa2 BB+ BBB adjourning the trial that it was difficult to foresee what arguments could DUGB 5 1/4 01/30/43 13.41% DANAGS 9 10/31/17 -12.04% Source: Bloomberg Aa3 AA- AA- be advanced before the Sharjah court to prevent the English court from KSA A1 A- A+ ruling on matters of English law. Bonds & Sukuk Indices (20 September 2017) Index Name Price 1-Day ∆ YTD∆ Yield UAE Aa2 NR NR Oman oil exploration closes $1bln pre-export financing loan- S&P MENA Bond and Sukuk Index 120.200 -0.08% 4.66% 3.14% Egypt B3 B- B source- Oman Oil Exploration and Production, the exploration arm of S&P MENA Bond Index 121.430 -0.09% 5.07% 3.15% Lebanon B3 B- B state-owned Oman Oil, has raised a $1 billion pre-export financing loan, a S&P MENA Sukuk Index 117.180 -0.06% 3.37% 3.11% company source told Reuters on Tuesday. The loan, a five-year facility, Bloomberg Global Developed Sovereign Bond Index 116.061 0.03% 7.06% 0.92% Turkey Baa3 BB+ BBB- was coordinated by Natixis and Societe Generale , the source said. The Bloomberg Global Investment Grade Corporate Bond Index 134.018 0.06% 8.14% 2.33% Tunisia Ba3 NR B+ loan was oversubscribed and "competitively priced", the source added, Bloomberg Global High Yield Corporate Bond Index 174.744 0.06% 9.12% 5.46% Morocco Ba1 BBB- BBB- without disclosing further details. Bloomberg USD Emerging Market Composite Bond Index 168.705 -0.13% 8.46% 4.44% Jordan B1 BB- NR Bloomberg US Treasury Bond Index 127.372 -0.05% 2.60% 1.87% Abu Dhabi Financial Group Plans $100m Private Bond Sale- Abu China Aa3 AA- A+ Dhabi Financial Group (ADFG), a privately owned investment company Dow Jones Sukuk Index 103.444 -0.05% 1.83% UK Aa1 AA AA with over $5 billion of assets under management, is considering issuing Interbank Rates (%) $100 million in debt through a privately placed bond, sources familiar with USA Aaa AA+ AAA 3 Month 6 Month 12 Month the matter said. The private placement, with a three-year tenor according YTD 31/12/2016 31/12/16 USD to the sources, would come at a relatively calm time in the Gulf’s debt 20 /09/2017 20/09/2017 20/09/2017 31/12/2016 Change SAIBOR 1.7938 2.0350 2.0488 2.2170 2.2438 2.4230 5-Year CDS capital markets. (%) KIBOR 1.7500 1.4375 2.0000 1.7500 2.3125 2.0625 Abu 54.580 -7.24 Atlas debt resolution plan hits stumbling block- Three BHIBOR 2.1000 0.6500 2.6000 2.2000 3.0750 2.6250 Dhabi QATAR 2.4805 1.7815 2.6600 1.9650 2.9653 2.3636 banks are blocking a deal aimed at resolving the close to 500 million Kuwait 62.290 -39.50 AEIBOR 1.5520 1.4757 1.7672 1.7179 2.1502 2.0950 dirhams ($136.1 million) debt troubles of -based Atlas Jewellery, -18.78 SAIBOR 2.0350 2.2170 2.4230 Dubai 139.092 banking sources said. The majority of the 22 or so creditor banks have LIBOR 1.3250 0.9979 1.4744 1.3177 1.7398 1.6873 Bahrain 227.440 -22.78 signed up to the agreement, but Union National Bank, Mashreq and EURIBORLIBOR -0.3290 0.9979-0.3190 -0.2710 1.3177-0.2210 -0.1710 1.6873-0.0810 12.12 Qatar's Doha Bank have declined, the sources said. JDIBOR 5.5880 4.5660 6.4840 5.3220 6.9000 5.8780 Qatar 88.380 TRLIBOR 12.8092 9.8990 12.8093 10.5683 12.9640 10.9240 KSA 80.130 -27.91 Lebanon Sells 364-Day Bills at Yield 5.35%- Lebanon sold bills due U.S. Treasuries Currencies USD Swap rates Egypt 342.500 -22.63 Current Sept. 20, 2018. The bills have a yield of 5.35 percent and will settle on 1-Day 1 Year Last 1-Day Yield USD 1-Day ∆ Lebanon 421.950 -9.54 Sept. 21. ∆ (%) price ∆ (%) Turkey 164.141 -39.48 Moody's says Egypt benefits from strong reform momentum, 1-Month 1.29 -0.004 KWD 0.3014 (0.0000) 1.480% 2-Y 1.655 -0.01% Iraq 398.840 -36.12 very weak government finances remain key challenge - Moody's 3-Month 1.03 -0.002 SAR 3.7504 0.0001 0.043% 5-Y 1.908 -0.01% says stable outlook on Egypt's sovereign rating indicates that the 6-Month 1.18 -0.003 BHD 0.3772 (0.0000) -0.040% 10-Y 2.199 -0.01% Morocco 120.560 -30.24 1-Year 1.29 -0.004 QAR 3.7073 0.0000 -0.695% 30-Y 2.471 -0.01% country's credit strengths and challenges are balanced. Moody's says China 54.793 -52.38 2-Year 1.39 0.018 OMR 0.3850 0.0000 0.008% Egypt's economic growth has started to pick up, and investor sentiment France 16.829 -49.70 has also improved. 3-Year 1.54 0.020 AED 3.6731 0.0000 0.000% Germany 9.479 -50.08 5-Year 1.83 0.035 EGP 17.661 0.0054 2.872% -45.04 7-Year 2.06 0.070 JOD 0.7118 0.0017 -0.141% Japan 25.166 10-Year 2.24 0.086 EUR 1.2010 0.0016 14.196% UK 20.493 -25.69 30-Year 2.81 0.227 US 22.390 -3.12

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